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Facing deadline, White House decision on student loans looms

Joe Biden
Posted at 7:20 AM, Aug 23, 2022
and last updated 2022-08-23 14:22:22-04

Since March 2020, federal student loan borrowers have been given a reprieve from monthly payments. But with student loan payments currently set to resume in September, the White House and President Joe Biden have major decisions to make.

According to CNN, the White House is leaning toward forgiving up to $10,000 in student loan debt for individuals making up to $125,000 annually. Sources told CNN that some groups could receive more in forgiveness.

The outlet report a decision could come on Wednesday.

Biden has said in the past he would be open to forgive up to $10,000 in student loan debt through executive order.

The White House has yet to confirm such details as Biden could make changes. Education Secretary Miguel Cardona confirmed on Sunday's "Meet the Press" an announcement is forthcoming.

"We've been talking daily about this, and I can tell you the American people will hear within the next week or so from the president and the Department of Education," he said.

The plan might not go as far as some Democrats have hoped. Many progressives have pushed the Biden administration to forgive up to $50,000 per borrower in loans.

A recent CNBC poll found that most Americans support forgiving student loan debt. Most, however, also expressed concerns that forgiving student loan debt could worsen inflation, which already hit 40-year highs earlier this year.